Page 13 - NorthAmOil Week 18

NorthAmOil PROJECTS & COMPANIES NorthAmOil
Freeport LNG Train 3 enters service
TEXAS
THE third train at the Freeport LNG export terminal on the Texas Gulf Coast has entered commercial service, the engineering, procure- ment and construction (EPC) contractors on the project have announced. In a May 4 statement, McDermott International, Chiyoda Interna- tional and Zachry Group said start-up of Train 3 had brought their joint venture project to completion.
Zachry, as the joint venture lead, partnered with McDermott for the pre-front-end engineer- ing and design (pre-FEED) work on the project in 2011. The two companies subsequently part- nered on FEED works for Trains 1 and 2, with Chiyoda later joining the partnership for work related to Train 3.
The project scope includes three pre-treat- ment trains, a liquefaction facility with three trains, a second loading berth and a 165,000 cubic metre full containment LNG storage tank. The three liquefaction trains have a combined capacity of 15mn tonnes per year (tpy).
In a separate statement, privately owned Free- port LNG said the start-up of Train 3 kicks off liquefaction services to France’s Total and South Korea’s SK E&S under their tolling agreements with the LNG exporter.
Construction on the $13.5bn liquefaction plant has been under way since 2014, with some delays along the way, including in relation to Hurricane Harvey in 2017. Train 1 entered ser- vice in December 2019, with Train 2 following in January.
Freeport LNG has the second-largest lique- faction capacity in the US, noted the company, and will process more than 2% of the country’s total natural gas production. The facility also incorporates the largest electric motor-driven refrigeration compressors in the world, and Freeport has touted the benefits of electric LNG (eLNG). The company says the electric motor drive it selected for the plant minimises air emis- sions, as well as ensuring efficiency while offer- ing longer maintenance intervals. Three General Electric 75-MW motors drive the propane and mixed-refrigerant compressors.
The start-up of Train 3 comes at a challenging time for the LNG industry, however, as it grapples with a global oversupply and depressed demand. As of late April, up to 25 cargoes for June loading from US export terminals were reported to have been cancelled by buyers, including around five from Freeport.
The company has not commented on the matter.™
UPSTREAM
MEG Energy announces
first quarter 2020 free cash
flow of CAD24mn, current
full year 2020 hedge book
value of CAD525mn and a
further 25% reduction in
full year capital investment
to CAD150mn
MEG Energy reported its first quarter 2020 operational and financial results.
MEG continues to respond proactively to the safety and financial challenges associated with the COVID-19 pandemic.
NEWS IN BRIEF
“We are committed to ensuring the health and safety of all our personnel and the
safe and reliable operation of the Christina Lake facility” said Derek Evans, President
and Chief Executive Officer. “The current business environment demands swift, decisive actions to enhance MEG’s already strong financial liquidity position. To that end, we are reducing production to minimum levels and advancing the planned plant turnaround, cutting capital by CAD100mn versus original guidance, and reducing non-energy operating cost and G&A guidance by CAD20mn and CAD10mn, respectively.”
MEG remains well positioned from a financial liquidity perspective, benefiting not only from its significant 2020 hedge book, the term and structure of its outstanding indebtedness and credit facility but also from the low decline, low cost structure of its high- quality Christina Lake asset.
MEG ENERGY, May 04, 2020
Black Stone Minerals
announces agreement with
Aethon Energy to restart
development of Shelby
Trough acreage
Black Stone Minerals today announced that
it has entered into a development agreement with affiliates of Aethon Energy with respect to the company’s undeveloped Shelby Trough Haynesville and Bossier shale acreage in Angelina County, Texas. The agreement provides for minimum well commitments by Aethon in exchange for reduced royalty rates and exclusive access to Black Stone’s mineral and leasehold acreage in the contract area. The agreement calls for a minimum of four wells to be drilled in the initial program year, which begins in the third quarter of 2020, increasing
Week 18 07•May•2020
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